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Investing.com - Morgan Stanley lowered its price target on Amcor Plc. (NYSE:AMCR) to $11.50 from $12.00 while maintaining an Overweight rating following the company’s first-quarter fiscal 2026 results. The new target represents a 36% upside from Amcor’s current price of $8.46. InvestingPro data shows Amcor pays a significant 6.15% dividend yield and has raised its dividend for 7 consecutive years.
The firm reduced its EBIT (earnings before interest and taxes) forecast for Amcor by 1% for fiscal 2026 and by 2% for both fiscal 2027 and fiscal 2028 after updating its model.
Morgan Stanley’s earnings per share (EPS) forecast shows mixed changes, with a 1% increase for fiscal 2026 but decreases of 2% and 3% for fiscal 2027 and fiscal 2028, respectively. The company currently trades at a P/E ratio of 26.28, which InvestingPro identifies as a high earnings multiple relative to peers.
The new $11.50 price target is based on three equally weighted valuation methods: a price-to-earnings approach ($9.68), an EV/EBITDA-based sum-of-the-parts analysis ($9.86), and a discounted cash flow model ($14.33). Interestingly, InvestingPro’s Fair Value assessment suggests the stock may be slightly overvalued at current levels. For deeper insights, check out the comprehensive Pro Research Report available for Amcor, one of 1,400+ US equities covered in detail.
Morgan Stanley maintained its 8.0% weighted average cost of capital (WACC) assumption and used an unchanged currency exchange rate of 0.65 for converting between U.S. dollars and Australian dollars in its valuation.
In other recent news, Amcor reported its first-quarter earnings for fiscal year 2026, surpassing analyst expectations. The company achieved an adjusted earnings per share (EPS) of $0.19, exceeding the forecasted $0.18. Revenue also slightly outperformed projections, reaching $5.75 billion. These results suggest a positive reception from investors regarding Amcor’s performance. The earnings announcement was a highlight for Amcor, reflecting its ability to meet and exceed financial expectations. This development is crucial for investors monitoring the company’s financial health and market position. Analysts’ estimates play a significant role in setting these expectations, and Amcor’s ability to surpass them is noteworthy.
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